§ Mr. HansonTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will outline the Government's latest plans to assist in the reduction of third world debt for 1992–93.
§ Mr. Lennox-BoydAgreement to begin implementing the Prime Minister's Trinidad terms initiative to relieve the burden of official debt on the poorest countries was achieved in December. Seven countries have already benefited and we expect many more to do so over coming months. As these new agreements take effect, we can expect a significant reduction in repayments due to government creditors. None the less, the Government continue to press for even greater relief for the poorest, most indebted countries carrying out economic reform.
The Government have strongly supported and provided their share of resources needed to implement a 1989 agreement, known as the Brady plan, to help deal with the problem of commercial debt. Deals involving the 371W effective cancellation of substantial portions of bank debts have been agreed, or are being negotiated, with most of the largest debtors. Most recently, Argentina agreed a deal which will involve an effective reduction of its $25 billion long-term debt to banks by around a third. Brazil is currently negotiating a similar deal with its commercial creditors.